1. REALTOR® vs Licensee Performance Metrics Study University of Denver © 2014 REcolorado All rights reserved.

2. Image space Purpose Research Team Research Methodology Findings Conclusions Introduction 2 © 2014 REcolorado All rights reserved.

3. Image space Purpose Gain an In-Depth Understanding of our Customers Compare Performance Metrics between REALTOR® and Licensee Agents Analyze Member Data using an objective, third party, statistical approach Understand the REALTOR® Value Proposition 3 © 2014 REcolorado All rights reserved.

4. Image space Philip Beaver, PhD Clinical Professor, Department of Business Information and Analytics Donald J. McCubbrey, PhD Clinical Professor, Department of Business Information and Analytics Interim Director, Burns School of Real Estate & Construction Management Research Team 4 © 2014 REcolorado All rights reserved.

5. Image space Research Methodology No assumptions made about differences between REALTORS and Licensees Statistical analysis techniques used to support any conclusions The study used Metrolist data from 2009 through June 2014 5 © 2014 REcolorado All rights reserved.

6. Image space Metrolist Membership Metrolist Licensees membership is growing 9% in 2011 12% in 2012 18% in 2013 22% in 2014 6 © 2014 REcolorado All rights reserved.

7. Image space FindingsREALTORS: 98% of Top Producers 7 © 2014 REcolorado All rights reserved.

8. Image space REALTORS have 92% of list sides 94% of sell sides by REALTORS REALTORS: Average Twice the Sides 8 © 2014 REcolorado All rights reserved.

9. Image space REALTORS: Twice the Transactions 9 © 2014 REcolorado All rights reserved.

10. Image space Average dollar volume for REALTORS was three times higher REALTORS: Higher Dollar Volume 10 © 2014 REcolorado All rights reserved.

11. Image space Almost 60% of active Colorado communities had no Licensees, with most higher-priced communities served exclusively by REALTORS REALTORS: In More Communities 63% of communities had no Licensees 11 © 2014 REcolorado All rights reserved.

12. Image space REALTOR: Higher Closing Prices 12 © 2014 REcolorado All rights reserved.

13. Image space REALTOR: Higher Average Price REALTORS’ average closing prices increase as listing volume increases Higher volume Licensees tend towards the lower-end markets 13 © 2014 REcolorado All rights reserved.

14. Image space Licensees: Listing and Selling Agent Licensees were twice as likely to act as both the listing and the selling agent for their transactions 14 © 2014 REcolorado All rights reserved.

15. Image space Licensees are more likely to sell their own homes or tenant- occupied homes Licensees: Sell Own Home 15 © 2014 REcolorado All rights reserved.

16. Image space Licensees: More Likely to List a Short Sale 16 © 2014 REcolorado All rights reserved.

17. Image space Licensees: Offer More Concessions 17 © 2014 REcolorado All rights reserved.

18. Image space Same average Days On Market No difference in closing price as a percent of list price Similar price reductions List Agent Performance 18 © 2014 REcolorado All rights reserved.

19. Image space Conclusion: Similarities Metrolist Licensee members have grown from 13% in 2009 to 22% in 2014 REALTOR and Licensees are similar in terms of: Days on market Sale price as a percent of list price Contract characteristics 19 © 2014 REcolorado All rights reserved.

20. Image space Conclusion: Differences 98% of top producers are REALTORS REALTORS list and sell twice as many properties REALTORS operate in a higher-priced market REALTORS are more reactive to market conditions, with Licensees showing similar behavior from year to year Licensees tend to pursue a lower-cost model 20 © 2014 REcolorado All rights reserved.

21. Contact Deborah Shipley Marketing Communications Manager dshipley@REcolorado.com 303.796.2574 © 2014 REcolorado All rights reserved.